For-Profit Charities

Published: December 18, 2000

While public opinion holds that for-profit organizations are better run than nonprofits, nonprofits are held to a greater scrutiny by their backers, by the government and, in many cases, by the public.

When the Hunger Site was run as a nonprofit organization, it received more hits per day and donated more money to fight hunger than it does currently. But since GreaterGood, a for-profit organization, took it over, the site has had fewer visitors and fewer sponsors.

I am much more comfortable giving when I know that the cause I care about will be the primary beneficiary. By taking 25 percent of the proceeds to manage the Hunger Site, GreaterGood ends up confusing the site's purpose and reducing its potential both to do good and to encourage the public to be philanthropic.